Good luck, Mark
Right now banks and mortgage companies are willing to negotiate with buyers, they do not want to have these properties on their books and would prefer to get them sold. Be sure you have your financing in order so you can show them you'd be ready to close the sale! in a prompt time frame, there is no set percentage that goes across the board. Be sure your not dealing with a "Short Sale" as there may be some hidden language, this could easily be explained by your REALTOR. There are plenty of good buys on the market with agents across the country, not foreclosures, talk to your agent and if you don't have one, don't hesitate to go to my web-site http://,WWW.movetotherockies.com and contact me, I have a great network of very qualified professionals across the country, I'd be happy to send you to visit with one in your area. Just a general answer to your question of, the price is $299,000 what should my offer be? I would not be afraid to offer in the neighborhood of $250,000 -$270,000 to get the ball on the court, The answer is always no, unitl you ask the question! really depends on your particular market conditions, Again Ask your REALTOR, Joyce Miller Broker/Owner of Joyce Miller Montana Realty Bozeman, Montana
What's truly astounding about this is that having agency representation usually cost buyers nothing.
I have seen where the offer is actually higher than the asking price and the offer still gets rejected by the lender.
The lender will do a Broker Price Opinion (BPO) when they get an offer. The price the lender will accept is based on the BPO not the asking price. Some say the discount is 82% -85% of the BPO, but that may or may not be true. It really depends on the lender. The problem can be that the BPO's can become outdated quickly or often the person doing the BPO may not do an accurate BPO in the first place. Even after the BPO is done, the lender often does not even let the listing agent know what the BPO came in at. And sometimes a lender will tell us that they will not accept an offer below a certain price, but they very well may when they actually get the lower offer.
It is really best to get a great Realtor and let them give you guidance in what a good offer would be. Short sales require lots of patience, as you often do not get an answer for 4 - 6 weeks or longer. If they reject the offer then you go through the same process all over again. There are some great deals, but they are not always easy. Some lenders are great to work with while others are next to impossible. We now even have short sales where they say in the listing that the lender will take up to three months to provide an answer.
Now if you are talking about a bank owned (REO) those are much simpler. On these the bank regularly changes the asking price until it is sold. Many are now setting very good prices that attract lots of Realtor and buyer activity. They often will get so much activity then when they get their first offer, the listing agent will send a message to all Realtors who have shown the home and say that the lender will accept the highest offer received by so and so date. We are getting multiple offers on these and they are often selling for more than the asking price.
Be aware that the banks ofen times use Broker Price Opinions to determine the asking price or acceptance price for the home. It is not unusual for the BPO to be out of wack with current asking prices in your community. This will depend on how quickly prices are droping in your area. -A great question to ask your agent.
For instance, I am a listing specialist in zip code 33179 in Miami. I make it a regular practice to update all my sellers on the market conditions relative to their homes each week. I have been amazed how often I can list a property on Wednesday at an aggessive price (lowest in the market) and come back on Monday only to find four or five properties have moved into lower postions than my listing. In my market we seem to have a follow the leader mentality amoungst some agents and sellers. This makes it difficult to determine what the lender in a foreclosure is willing to accept.
Knowing this. I submit market condition reports along with all my short sale and foreclosure offers in the hopes that the lender will consider the data (current asking prices and sold prices for similar properties in the are) when deciding to accept my client's offer.